The House Ways and Means Committee advanced the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 on April 2, the same day the Senate reintroduced its latest version of the Retirement Enhancement Savings Act (RESA) of 2019. The bills provide some administrative relief to employers and incentivize them to offer more savings plan opportunities and retirement income security to workers. A reconciled version of the two bills is expected to become law.

According to SBA Principal Mindy Zatto, the proposed legislation stands to benefit both employers and employees.

Other provisions of the SECURE Act specifically for individuals are designed to:
* Eliminate the current age 701/2 limit for contributing to an IRA
* Allow graduate students to count stipends and non-tuition fellowship payments as compensation for IRA contribution purposes
* Permit penalty-free withdrawals of up to $5,000 from qualified retirement savings plans to help pay for childbirth or adoption expenses (with repayment permitted)
* Expand allowable expenses for 529 college savings plans to include apprenticeships, homeschooling, private school costs or up to $10,000 of qualified student loan repayments
* Increase penalties for individuals who fail to file tax returns.

"Employers that offer retirement programs should take the opportunity now to evaluate options for their current and future plans under the SECURE Act," said Zatto. "The proposed bill includes features that can be substantially beneficial for both plan sponsors and participants who want to increase retirement income security."

A summary of the SECURE Act's provisions can be found here (PDF): https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/SECURE%20Act%20section%20by%20section_0.pdf.

A summary of the similar RESA can be found here (PDF): https://www.finance.senate.gov/imo/media/doc/RESA%20Summary%204.1.19-banner-converted.pdf.

To speak with Strategic Benefits Advisors' experienced team of benefits consultants about the potential impact of these bills on your plans, call 770-551-8989.

About Strategic Benefits Advisors:

Strategic Benefits Advisors, Inc. (SBA) is an independent, full-service employee benefits consulting firm focused on creatively and effectively solving complex benefits issues for clients ranging from 500 to over 250,000 employees. Founded in 2002 by veteran consultants Mindy Zatto and Andy Adams, SBA provides practical consulting recommendations and expert implementation of solutions for all types of employee benefits programs, including retirement, health and welfare, financial wellness and employee recognition. With an average of over 20 years in the field, SBA's team of actuaries, consultants and systems specialists is among the most experienced in the industry.

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